Chamber and committees

The £300,000 that was allocated to the islands bond in this financial year will now support projects that will deliver on priorities that are identified by our island communities. Those projects will help to inform our future funding requirements so that we can tackle the depopulation challenges across our islands. That work complements the support that is being provided to deliver on “The National Islands Plan”, which will see a total of £8.3 million invested in critical infrastructure projects. That continues our record of delivering significant investment in key island-based projects.

Mr Doris will have heard my statement to Parliament two weeks ago in which I explained the financial constraints under which we are operating whereby, once we have set the tax rates for a financial year and given our inability to borrow for resource expenditure, we are essentially operating on a fixed budget.

There have been spiralling increases in inflation during this financial year. That has resulted in the necessity to settle pay demands at a much higher level than those that we had been expecting. That puts acute pressure on the Scottish Government’s budget, because we do not have the flexibility that the UK Government has, to which Mr Doris refers.

I would like to see the UK Government take forward targeted measures such as an increase in universal credit payments, because that would provide support directly to those who are most affected by the challenges that are faced in the cost of living crisis. That is why the Scottish Government has taken the steps that we have on, for example, the Scottish child payment, which will ensure that families that are really struggling are given the greatest amount of support.

I am very concerned, in reading news reports about what is expected to be in the chancellor’s statement on Friday, that more and more of the measures that are proposed to be taken by the UK Government run the risk of increasing inequality in our society and preferring the interests of those who are wealthy over those who face financial challenges and are in poverty. I appeal to the UK Government, as I have to my colleagues in Wales and Northern Ireland, to bring forward measures that will support those who are hard pressed by the financial crisis.

Despite the huge challenges that the Scottish budget faces, the UK Government has offered no support to deal with inflationary pressures. With inflation now at more than 10 per cent and predicted to go higher, the Scottish budget is worth around £1.7 billion less than it was when it was presented to Parliament in December.

The Scottish budget is fixed, we cannot vary Scottish income tax in year, our reserve funding is fully allocated and our borrowing powers are woefully inadequate. We need to secure from the UK Government the necessary financial flexibility to enable us to address the very real financial challenges that we face this financial year.

It will be allocated across 31 islands, in six island local authorities. The funding will be allocated directly to support islands that have populations in the low hundreds. The projects include the development of digital and community hubs, which will provide or safeguard key economic and social infrastructure to support healthy, thriving islands. The largest single award of £1.3 million will support a major new nursery development on mainland Orkney, which will benefit all of Orkney’s islands. The project is directly linked to population retention and growth, but it will also address child poverty and provide practical training opportunities for employment.

The cost of living crisis is an unprecedented challenge for us all and action must be taken by all Governments, including and especially by the UK Government.

The First Minister wrote to the Prime Minister on 6 September emphasising the need to act urgently to support citizens now. Given the grave nature of the crisis, I also wrote to the new chancellor to press the need for action. The Prime Minister’s announcement on the energy price cap is welcome, but more action is required to support struggling families and businesses.

That idea was put to me in recent discussions with the leaders of island authorities. I might come on to that in a subsequent question, if we reach it. The idea will be considered as part of a range of measures that we want to take forward to improve connectivity among the islands. We want to ensure that practical measures can be taken to tackle depopulation, which I know is of concern to Mr McArthur and his constituents.

Budgets are not allocated by the Scottish Government to agencies specifically for the purposes of social media advertising and information is not held on the breakdown of social media advertising expenditure by agency. Scottish Government spend on social media advertising from April to August 2022 was £371,993.

I am always interested in the thinking and contribution of Jim Hunter on all matters, and particularly on matters in relation to the Highlands and Islands. Therefore, along with my colleague Mairi Gougeon, I will look with care at those issues. Rhoda Grant helpfully points out the significant relationship between the issues of availability of affordable housing, economic opportunity and depopulation. Without doubt, there is an interrelationship between those matters.

On the question of a new authority, I reserve my position. I would rather that we actually tried to achieve the outcomes that Jim Hunter talks about, which I am certain Rhoda Grant will support. I hope that the measures that the Government is taking in relation to our islands expenditure is of assistance in trying to support the objectives of tackling depopulation, boosting economic opportunity and boosting the supply of housing in the Highlands and Islands.

As Mr Bibby will be aware, I have set out an initial round of reductions in budgets, which were explained to Parliament two weeks ago. I do not believe that that will be the last set of reductions that I will have to make because of the enormous financial pressures that we face as a result of inflation and public sector pay.

Currently, I am exploring a range of different aspects of public expenditure, which might be subject to further reductions as part of the emergency budget review and as part of my in-year financial management. That might have an effect on the Government’s advertising and social media costs. I will advise Parliament of what decisions I arrive at on any of those questions in due course.

I begin by extending a warm welcome to Roz McCall to Parliament today.

It is a great privilege to contribute to the debate and to recognise the unrivalled record of service by Her Majesty the Queen and her commitment to devoting her life to the service of her people. In fulfilling that commitment, Her Majesty visited communities the length and breadth of Scotland, the United Kingdom and many countries across the Commonwealth and the globe. On some of her visits, she brought solace and comfort to communities that were hurting; in most cases, she brought much joy. Indeed, on one of her visits to the city of Perth in my constituency, she brought very good news.

During her diamond jubilee in 2012, the Queen granted city status to the city of Perth. The city and royal burgh of Perth was the capital of Scotland from the 9th century until 1437, but city status was summarily removed on local government reorganisation in 1975. The restoration of city status was the culmination of a local campaign that was expertly led by my dear friend and former provost of Perth and Kinross, Dr John Hulbert. The awarding of city status took place on a beautiful day in July 2012 on the banks of the River Tay, when the Queen was presented with the keys to the city and the Duke of Edinburgh was awarded the freedom of the city of Perth. It seemed a pretty fair exchange for the great honour that had been bestowed on Perth.

That morning, I had been on the radio dealing with the prospect of job losses at the Hall’s of Broxburn sausage factory. When I was introduced to the Queen, I thought that she might ask me something about local matters of interest in Perthshire. She rather wrong-footed me, however, by expressing her concerns about the possible loss of jobs at Hall’s of Broxburn, and she wished me well in my efforts to avoid that happening. I never knew whether that was a product of impeccable briefing by royal staff or the reputed keen interest of the Queen in following the broadcast media, and now I shall never know the answer to that question of intrigue.

Although Her Majesty the Queen enjoyed a very long life, her death at Balmoral castle stunned us all. It also meant that all of the arrangements that had been carefully planned over many years to deal with such a situation were put into place. It has been widely recognised that, from the moment that Her Majesty’s cortege left the gates of Balmoral castle to the moment that she left Scotland for the last time, our country paid due, respectful and appropriate tribute to Her Majesty and her deep association with Scotland. I place on record my deepest thanks to all the public servants in Scotland across many organisations and partners who worked with care, precision and commitment to ensure that all of that could be achieved.

Her Majesty the Queen clearly loved Scotland and, in the days after her death, the people of Scotland demonstrated that they reciprocated that love for the Queen.